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State-of-the-art river barges will form the core of Nile Cargo's growing fleet, providing a unique transportation solution that will see parent company Nile Logistics link the Mediterranean Sea to South Sudan

Tuesday, August 10, 2010

Nile Cargo, a Portfolio Company of the Nile Logistics, announced today that it has taken delivery of the first two of more than 100 custom-designed, environmentally friendly river barges. The new vessels will augment the company’s existing fleet of 31 reconditioned vessels.

The two vessels were delivered today by the Alexandria Shipyard, which is building 30 of the new river barges ordered by Nile Cargo. A further 32 of the contracted barges are being built in the first phase by Arab Contractors Shipyards in Helwan, south of Cairo.

“The barges’ 100-meter hulls, compared to the existing 50-meter hulls presently in use, allow Nile Cargo to double its capacity, while the efficient and environmentally considered design allows us to dramatically cut per-unit shipping costs, while producing lower levels of emissions compared to road transportation,” said Gen. Maged Farag, Chairman of the National Company for Multimodal Transport (NMT). “It is truly exciting to begin operating these barges in the vital river-transport sector. We have worked with leading design consultants to conceive world-class river transport vehicles that are versatile, efficient and specifically created to navigate local conditions.”

NMT is a Nile Logistics holding company for Nile Cargo (previously known as National River Transportation Company) and National River Port Management Company (NRPMC), in addition to its other investments in the transportation, storage and stevedoring services. Nile Logistics also controls investments in Sudan through River Valley-Keer Marine.

“On behalf of NMT and Nile Cargo I would like to thank Alexandria Shipyards for their outstanding work to date,” Farag concluded.

Nile Cargo’s fleet of barges, which will ultimately reach 135 vessels (31 refurbished plus 104 newly commissioned vessels), will be capable of carrying all types of dry bulk goods as well as containers. The new 100-meter barges will have a carrying capacity of 1,500-1,600 tons or 92 TEUs (capacity of one shipping container) per barge. The vessels were designed by Ship Design Group, an internationally-respected European design and engineering company with extensive experience in river barge design and construction. Bureau Veritas (BV), one of the world’s leading marine certification bodies, is supervising barge construction and the classification process to ensure that the barges meet the highest international safety and quality standards.

“It is always gratifying when the most compelling business case also turns out to be best for the environment and, indeed, the nation,” noted Hisham El-Khazindar, Managing Director and Co-Founder of Citadel Capital, the leading private equity firm in the Middle East and Africa with US$ 8.3 billion in investments under control.

“Today, around 95% of Egypt’s freight traffic is hauled on highways, with the result being excessive emissions and highway safety issues, to say the least. With each barge taking on the cargo of up to 50 transport trucks, Nile Cargo will offer not just a greener, more fuel efficient solution, but a solution that will help ease safety concerns on the nation’s highways as it captures more and more market share.”

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Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity-Specific Funds. The firm’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2005-2010, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.